EFFICIENCY ASSESSMENT CONCEPT MODEL FOR FINANCIAL ALLIANCES: BALTIC PENSION FUND MANAGEMENT
Keywords:Financial alliances, Bancassurance, pension fund management, stochastic frontier analysis, data envelopment analysis
The purpose of the article is to develop and implement an efficiency assessment concept model for financial alliances based on efficiency assessment of Bancassurance in the pension fund management in the Baltic countries.
Tasks of the research include explaining the topicality, studying the Bancassurance, review of frontier based efficiency measurement techniques such as stochastic frontier analysis (SFA) and data envelopment analysis (DEA) and its applicability for banking, insurance and pension funds industry as well as Bancassurance efficiency assessment by suing SFA and DEA.
Methods used are qualitative- monographic. literature review, document analysis, data evaluation. Quantitative- econometric techniques, including regression and correlation analysis, economic modelling techniques, including SFA and DEA, descriptive statistics methods, cluster analysis.
Bancassurance was found to be the dominant business model in the pension fund management in Baltics. Pension fund management business is very important for financial groups operating in the Baltic countries because it generates very strong return on equity.
Small and medium specialised pension fund management companies proved to be capable of achieving competitive efficiency compared to other companies.